On 8 July 2026, the Council of the European Union adopted the amended Regulation (EC) No 261/2004 and (EC) No 2027/97 on air passenger rights and carrier liability. The legislative act, approved at third reading, updates rules on compensation and assistance for denied boarding, cancellation, or long delays, as well as carrier liability for passengers and baggage. Latvia voted against, Austria abstained, and Portugal voted in favour while calling for further clarifications on extraordinary circumstances.
Latvia stated it fully supports passenger protection but cannot back the compromise, citing disproportionate financial and administrative burdens on air carriers, potential negative impacts on ticket prices and air connectivity for peripheral Member States, removal of legal certainty for safety-related operational decisions, and cumulative effects on regional connectivity. Austria supported the Commission’s objectives but abstained, arguing the text deteriorates passengers’ existing legal position in several key areas and raises numerous new interpretation questions. Portugal voted in favour, thanking the Cypriot Presidency, but regretted the revision is not more ambitious; it called for certain situations—such as sudden crew illness, safety shortcomings, airport power failure, and drone interference—to be explicitly listed as extraordinary circumstances, and urged multilateral efforts for a global level playing field.
Stakeholder impact The regulation directly affects air carriers, passengers, national enforcement bodies, and EU institutions. Carriers face new compliance costs and potential liability changes, which Latvia warned could raise ticket prices and reduce connectivity for peripheral regions. Passengers gain updated compensation and assistance rules, though Austria argued their legal position may weaken in some areas. National enforcement bodies will need to interpret and apply the revised rules, potentially facing new legal questions. The adoption also sets a precedent for EU-level harmonisation of air passenger rights, with Portugal urging further international coordination to ensure a level playing field.
Institutional follow-up The regulation will now be published in the Official Journal of the European Union and enter into force 20 days later. Member states must transpose the new rules into national law within a specified period. The European Commission is expected to monitor implementation and may issue guidelines on extraordinary circumstances, as requested by Portugal.